Turkey Holds Key Rate, Signaling Commitment to Fight Inflation

Turkey's central bank kept its key interest rate unchanged, underscoring its commitment to quelling inflation amid new geopolitical risks.
The monetary policy committee, led by Governor Fatih Karahan, left the one-week repo rate at 46%, in line with all economists' expectations in a Bloomberg survey, even as inflation slowed to 35.4% in May from 37.9% a month earlier and businesses called for a cut.

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Yahoo

2 hours ago

• Yahoo

Peter Schiff Predicts 'Worse Financial Crisis Than 2008' As Fed Holds Rates: 'The Solution Involves Much Higher Interest Rates' As Years of Easy Money Trigger Stagflation And Investor Exodus

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Economist Peter Schiff issued warnings about America's economic trajectory during Wednesday's Federal Reserve meeting, predicting the central bank's decade-long policies will trigger an unavoidable crisis worse than 2008. What Happened: The Federal Open Market Committee kept interest rates unchanged at 4.25%-4.50% for the fourth consecutive meeting, while projecting two rate cuts in 2025. However, Schiff told Fox Business that Fed Chair Jerome Powell 'basically admitted that they have no idea what's going to happen.' Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — The Fed's updated projections show Personal Consumption Expenditures inflation rising to 3.0% in 2025, up from March's 2.7% forecast, while real GDP growth was downgraded to 1.4% from 1.7%. Unemployment is expected to reach 4.5% in 2025. Schiff argued these forecasts dramatically underestimate the severity of coming problems. 'All of the inflation chickens that the Fed has been releasing for more than a decade are coming home to roost,' he said, attributing inflation pressures to years of artificially low rates rather than tariffs. The economist predicted stagflation, combining recession with 'much higher inflation happening at the same time,' potentially escalating to hyperinflation. He warned of a 'global exodus out of U.S. stocks, out of U.S. bonds' as foreign investors retreat from American It Matters: Schiff's warnings align with growing economic concerns about America's economic foundations. Nobel laureate Paul Krugman recently warned of an 'emerging-market-type crisis' featuring sudden capital flight, housing crashes, and dollar devaluation. Concerns about America's fiscal sustainability are mounting across Wall Street. Tesla Inc. CEO Elon Musk recently warned the U.S. faces 'de facto bankruptcy' as federal debt surpasses $37 trillion, with interest payments consuming 25% of tax revenue. JPMorgan Chase & Co. CEO Jamie Dimon has warned of potential bond market disruption. The economist insisted that lower rates won't solve America's problems because cheap money caused them. 'The solution involves much higher interest rates,' Schiff said, acknowledging this would trigger widespread bankruptcies, defaults, and 'a protracted recession, probably a much worse financial crisis than 2008.' Read Next: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Arrived Home's Private Credit Fund's has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Image via Shutterstock This article Peter Schiff Predicts 'Worse Financial Crisis Than 2008' As Fed Holds Rates: 'The Solution Involves Much Higher Interest Rates' As Years of Easy Money Trigger Stagflation And Investor Exodus originally appeared on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

Yahoo

2 hours ago

• Yahoo

3 reasons the US stock market could crash in September 2025

The US stock market's close to another all-time high, at least when looking at the S&P 500 index. That's terrific for anyone who's been snapping up shares in recent years. However, despite the seemingly strong investor sentiment, there are some potentially massive risks being overlooked, several of which could even trigger a full blown crash later this year. There are several concerning trends that the market is seemingly ignoring. I think the three biggest are: The investment management company Pimco has recently calculated the cyclically adjusted price-to-earnings (CAPE) ratio of the S&P 500 to be in the 94th percentile. That's a fancy way of saying US stocks are trading at earnings multiples significantly higher than their historical average. And historically, such a high CAPE has been a prelude to major market crashes as in 1987 and 2000. At the same time, new tax cuts and higher government spending in the US during a time of fiscal instability and tariff uncertainty create a lot of complications for the Federal Reserve. With fears of inflation potentially making a comeback, the central bank could be forced to start hiking interest rates again. And that might spark a fresh wave of corporate defaults given the growing bubble of overleveraged balance sheets. Beyond brewing trade wars, conflicts have started popping up across the globe, particularly in Eastern Europe and the Middle East. Continued escalation of tensions could lead to even further supply chain disruptions, oil price shocks, or a capital migration to gold, which could spark significant volatility in the stock market – particularly among the businesses trading at lofty valuations. As we approach the end of summer, the impact of current macroeconomic uncertainties is expected to emerge. That means September could be the tipping point. Does that mean a crash is guaranteed to happen? Of course not. Geopolitical tensions could calm while economist forecasts could be completely wrong (it wouldn't be the first time). So what should investors do? Trying to time the market is a strategy that almost never works. Instead, holding through the storm has been a far more successful strategy in the past. Having said that, trimming large portfolio positions might be prudent, especially if the stocks are trading at a lofty valuation. Take Nvidia (NASDAQ:NVDA) as an example. The GPU chip designer has been one of the best-performing US stocks over the last five years, thanks to skyrocketing demand for its technology. The explosion of artificial intelligence (AI) infrastructure investments by data centres has translated into triple-digit profit growth, propelling the market-cap well beyond $3trn. However, economic turbulence from the macro-environment could cause AI-related spending to slow significantly. That could potentially wipe out a significant chunk of its income stream. In such a scenario, a sharp share price drop wouldn't be surprising – especially for a company operating in the cyclical semiconductor space. That's why investors with a large position in Nvidia today may want to consider potentially trimming their exposure. If a crash does emerge, there are going to be some fantastic, high-quality companies going on sale. And by having a watchlist to top up on top-notch stocks, investors can be ready to consider incoming bargains like (possibly) Nvidia if they're not already invested. The post 3 reasons the US stock market could crash in September 2025 appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Bloomberg

3 hours ago

• Bloomberg

Surging UK Grocery Bills Threaten to Rekindle Inflation Fears

Surging grocery bills are threatening to slow the pace of the Bank of England's interest-rate cuts by raising the risk that inflation will stay elevated even as the UK economy shows signs of sputtering. The prices of staples including butter, beef and chocolate in May were up nearly 20% from a year earlier, contributing to the biggest annual jump in overall food prices since February 2024. It was spurred in part by increases in national insurance contributions, the minimum wage and packaging costs that retailers passed along to consumers.